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BBE612S - Business Ethics - 1st Opp - Nov 2022 |
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n Am I BI A u n IVE Rs ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF COMMERCEH, UMANSCIENCESAND EDUCATION
DEPARTMENTOF GOVERNANCEAND MANAGEMENTSCIENCES
QUALIFICATION: BACHELOR OF MANAGEMENT
QUALIFICATION CODE: 07BBMA
LEVEL: 6
COURSE CODE: BBE612S
SESSION: NOVEMBER 2022
DURATION: 3 HOURS
COURSE NAME: BUSINESSETHICS
PAPER:1
MARKS: 100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Ms O.N Kangandjo
Mr B. Zealand
Ms E. Olivier
Mr K. Uirab
Ms J. Hambabi
MODERATOR: Prof. Asa
THIS QUESTION PAPER CONSISTS OF 7 PAGES (Including this front page)
INSTRUCTIONS
1.
Answer all questions.
2.
Read all the questions carefully before answering.
3.
Marks for each question are indicated at the end of each question.
4.
Please ensure that your writing is legible, neat and presentable and start each
Section on a new page.
PERIVilSSIBLE MATERIALS
1. Examination question paper
2. Examination answer sheet
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Section A. Part 1: Multiple choice questions from 1-10. Answer all the questions in the
answer booklet provided.
[lXlO = lOmarks]
QUESTION 1
1. An act may be part of the isolated behavior of a single individual who: (apait from which
one)
(a) Unintentionally discriminates based on personal prejudice.
(b) An act may be part of the routine, institutionalized behavior of a group.
(c) The act must intentionally discriminate out of personal prejudice.
(d) An act may be part of the isolated behavior of a single individual who unintentionally
discriminates because he or she uncritically adopts the practices and stereotypes of his or
her society.
2. The following is one of the anticompetitive practices oligopolistic and monopolistic firms
engage in except:
(a) service fixing
(b) price fixing
(c) manipulation of supply
(d) price discrimination
3. According to _________
, an invisible hand is the market competition that
drives self-interested individuals to act in ways that serve the society
(a) John Locke
(b) David Ricardo
(c) Adam Smith
(d) Karl Marx
4. ______
is privacy with respect to a person's inner life. This includes the person's
thoughts and plans, personal beliefs and values, feeling, and wants.
(a) Physical privacy
(b) Personal privacy
(c) Psychological privacy
(d) Spiritual privacy
5. In this view, the employee's main moral duty is to work toward the goals of the firm. This
view is referred to as:
a) Law of Legitimacy
b) Law of Structure
c) Law of Agency
d) Law of Duty
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6. John is the purchasing officer in the Ministry of Works and Transport, at the moment he
got a task of purchasing computers for the government to the tune ofN$100 000 000.
One of the suppliers is offering him a bribe ofN$200 000. If John accepts the bribe,
that acceptance will have the following effect on the market.
(a) The computers of the briber will compete equally with the computers of other sellers.
(b) The market will be open for other sellers to enter.
(c) It will have no effect on the market
(d) It will serve as a barrier to others entering the market; the briber becomes, in effect, a
monopoly seller.
7. Affirmative action calls for _____
discrimination.
steps to eliminate the effects of past
(a) macro
(b) positive
(c) 1111cro
(d) negative
8. In determining the ethical nature of payments used for purposes other than to shut out
other competitors from a market, the following considerations are relevant:
(a) Is the offer of a payment initiated by the payer, or does the payee demand the payment by
threatening injury to the payer's interests?
(b) Is the payment made to induce the payee to act in a manner that violates his or her official
sworn duty to act in the best interests of the public?
(c) None of the above.
(d) (a) and (b)
9. Arguments against discrimination are:
(a) Utilitarian, rights and justice arguments
(b) Rights, entitlements and fairness arguments
(c) Justice and Kantian arguments
(d) Civil and criminal
10. According to Adam Smith a natural price is __________
_
(a) the price that is charged when demand is greater than supply
(b) the price that is charged when supply is greater than demand
(c) the price that just covers the cost of producing the costs of producing the commodity
including the going rate of profit obtainable in order markets
(d) Is the price that gives the firm abnormal profits
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Section A. Part 2: TRUE/ FALSE
Indicate whether the following statements are True or False. Answer all the questions in
the answer booklet provided. Indicate true or false next to the corresponding number(s)
QUESTION2
[lOmarks]
No. Questions
2.1 Justice arguments against discrimination point out that degrading stereotypes
undermine the self-esteem of the groups that are discriminated against.
2.2 Management is setting a new direction or vision for a group to follow.
2.3 Governments are legitimate countervailing means of balancing the power of the
large corporation.
2.4 Adam Smith assumed that Human beings are solely motivated by self-interested
desire to make a profit.
I
2.5 Most collusion between oligopolies is based on spoken forms of cooperation.
I
2.6 Institutional discrimination is intentional or unintentional discrimination due to
organizational policy or practices.
2.7 Affirmative action is when preferential treatment in hiring, promotion, and
dismissal favoring historically disadvantaged groups in an attempt to offset lingering
effects of past discrimination and to counteract continuing unintentional and
institutional discrimination: called "reverse discrimination" by detractors.
2.8 Ethical relativism is the theory that, because different societies have different ethical
beliefs, there is no rational way of determining whether an action is morally right or
wrong other than by asking the people of that society what they believe.
2.9 Objective conflicts of interest are conflicts of interest based on financial
relationships.
2.10 Alienation is not allowing lower working class to develop their productive potential,
satisfying their real human needs.
Total
[l0marks]
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SECTION B. SHORT/ESSAY QUESTIONS
[60marks]
QUESTION 3
Lawrence Kohl berg identified six stages of moral growth / development. Explain the first five
stages of moral growth / development in detail.
(10)
QUESTION 4
4.a) Fundamental principle of Distributive Justice is that equals should be treated equally and
unequals treated unequally. Give a short explanation of distributive justice.
(2)
4.b) Briefly discuss the types of distributive justice.
(8)
QUESTION 5
What types of unethical practices are common in oligopolies? How do they occur? Discuss any
five.
(10)
QUESTION 6
Despite the difficulties with arguments against discrimination, there are five widely recognized
categories of discriminatory practices. Identify those discriminatory practices and explain them.
(10)
QUESTION 7
Bribes and extortion are obviously unethical and create clear conflicts of interest. Accepting gifts
may or may not be ethical, depending on a number of factors. Briefly explain any five of these
factors.
(] 0)
QUESTION 8
Briefly explain the five characteristics of moral standards.
(10)
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SECTION C: CASE STUDY:
[20marks]
Red Bull gives you .... increased risk of heart disease,
say scientists
By Fiona Macrae
UPDATED: 22:50 GMT, 15 August 2008
Just one can of Red Bull could raise the risk of heart attack or stroke, even in young people,
researchers have warned.
A study of university students found drinking one 250ml can of the sugar-free version of the
energy drink that 'gives you wings' increased the 'stickiness' of the blood and raised the risk of
life-threatening clots.
Health doubts: Sugar-free Red Bull
Researcher Dr Scott Willoughby said: 'One hour after they drank Red Bull, (their blood systems)
were no longer normal. 'They were abnormal like we would expect in a patient with
cardiovascular disease.
'If you get an increase in stickiness and a decreased ability of the blood vessels to stop its
stickiness, that adds up to a bad situation.
'If you add in other risk factors for cardiovascular disease - stress or high blood pressure - this
could be potentially deadly.'
Dr Willoughby, of the Cardiovascular Research Centre at the Royal Adelaide Hospital, said he
was 'alarmed' at the results and would not drink Red Bull himself.
Those with underlying heart or circulatory problems should think twice before buying the
caffeine-loaded drink, he said.
The results, reported in the Australian newspaper, also shocked the students taking part, some of
whom drank up to eight cans a night to help them stay awake to study. Many now refuse to
drink Red Bull again.
Red Bull is banned in Norway, Uruguay and Denmark because of health fears, but the company
last year sold 3.5 billion cans and bottles in 143 countries.
In Britain alone, it has sales of £271 million a year, with much of the cash spent in bars and clubs
were it is a popular mixer with vodka and other spirits.
Previous studies have warned the stimulant effect of Red Bull can mask some of the tell-tale
signs of drunkenness - putting revellers at risk of injury and attack because they do not realise
how intoxicated they are.
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Dr Willoughby said drinking Red Bull caused the blood 'to become sticky'
The Australian researchers said that two of the drink's ingredients - caffeine and the amino acid
taurine - may have dangerous consequences for the heart when taken together.
Dr Willoughby said: 'Caffeine and taurine - both of these individually point towards being
beneficial but maybe there's something quirky about the effect of the combination of the two that
is causing this reaction, that is what we need to look at next.'
Formulated by the marketing director of an Austrian toothpaste company in the 1980s, one can
contains 80 mg of caffeine, around the same as a cup of filter coffee, or two cups of instant.
However, cans do carry health warnings advising people not to drink more than two a day.
Dr Willougby said: 'If you have any predisposition to cardiovascular disease, I'd think twice
about drinking it.'
Source: http:/ /www.dailymail.co.uk/health/aiiicle- l 045195/Red-Bull-gives---increased-risk-
heaii-disease-say-scientists.html
QUESTION 9
9.1. In which of the three theories of consumer protection would the price of Red Bull
necessarily have to be the highest and why?
(2)
9.2. It is alleged in the case that Red Bull could raise the risk of heaii attack or stroke. Do
you think due care was exercised in producing Red Bull? Motivate your answer.
(10)
9.3 Outline the four main moral duties of contractual theory of businessfirms' duties to
consumers.
(8)
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